Specialist providers will give you the cheapest loan insurance quote
- 9TH OCTOBER 2007
Loan protection can be a very valuable product to have in your corner if you have loan repayments to make each month and worry that if you should lose your income due to being out of work through having an accident, being sick or becoming unemployed. If you want the cover and are eligible for it then buying a policy from a standalone specialist is the best way to go.
While you can take the cover out alongside the loan from the high street lender this is often the most expensive way of purchasing the cover and it can almost double the cost of a cheap loan. If you shop around for the cover and choose to buy it independently then you get a loan insurance quote for the cover for much lower premiums. British Insurance is an ethical specialist provider of payment protection insurance (PPI) and they will give you a quote which is around 80% less when compared with the high street lender.
Managing Director Simon Burgess is very “anti” the high street lender and is forever crusading to get the consumer to realise that the cover the high street lender offers is an inferior product for a much higher premium than that offered by standalone providers and that you do have other options when it comes to protecting your loan repayments.
Loan insurance can give you the money to carry on meeting your loan repayments once you have been out of work for 30 days or more continually, although some providers won’t payout up to the 90th day. A policy would then continue to provide you with a tax free income which would continue to payout for up to 12 months and with some providers for up to 24 months.
As with all insurance policies, there are exclusions with a policy which means you would not be able to claim against it. The exclusions often consist of being retired, a part-time worker or suffering an illness at the time of taking out the policy and are found in the small print of policies. Of course these are only the common exclusions and when comparing policies the exclusions along with the premiums need to considered as well.
A specialist provider will make sure that you are given the information needed to ensure the product is suitable for your needs at the time of giving a loan insurance quote, so don’t take the cover offered by the high street provider. Shop around in order to get the right protection for you.
